Townsville power shutdown hits CSG

Transfield Services Infrastructure Fund’s Townsville power plant has been shut down because of tropical cyclone Yasi, forcing
Arrow Energy
to halt coal seam gas supplies to the generator.

But the 234-megawatt power plant should be running again within 24 hours, a spokesman for the fund told Resources Daily.

The fund’s Townsville and Collinsville power plants, and its Windy Hill wind farm suffered “minimal damage", he said.

“Collinsville is currently operating, Townsville is expected to be operating within 24 hours and Windy Hill is awaiting inspection of the grid prior to resuming operating," the spokesman said.

The company does not expect a material financial impact, he added.

The closure meant that Arrow Energy, owned by Royal Dutch Shell and PetroChina, was not able to continue CSG supplies to the generator and deliveries have been temporarily suspended, an Arrow Energy spokeswoman said.

Arrow and partner AGL Energy supply the Townsville generator from their Moranbah coal seam gas project, one of the largest operating CSG ventures in Australia. They also supply Queensland nickel and copper operations.

Arrow expects to ramp up production again at Moranbah in consultation with customers, it said. Initial inspections of the project indicate there has been “very little impact," it added.

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“Late yesterday Arrow Energy significantly reduced production at the Moranbah gas project as gas customers in north Queensland halted operations in preparation for cyclone Yasi," Arrow said in a statement.

“Operations have either resumed today or are expected to recommence over the weekend."